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Is Coinbase Exchange Headed Towards An Inevitable Collapse?

Coinbase, the largest U.S. based crypto exchange, is slowly losing its appeal to customers as failures, data breaches, and expensive transaction fees all affect efficient trading on the platform. In a recent Twitter poll by a crypto analyst, Josh Rager, 66% of the 5000 votes+ cast said they would be willing to delete or stop

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Coinbase, the largest U.S. based crypto exchange, is slowly losing its appeal to customers as failures, data breaches, and expensive transaction fees all affect efficient trading on the platform.

In a recent Twitter poll by a crypto analyst, Josh Rager, 66% of the 5000 votes+ cast said they would be willing to delete or stop using their Coinbase account after recent crashes on the exchange. 

The New York-headquartered crypto exchange is slowly dying as multiple factors culminate in users leaving the platform in the past few days.

In this article, we discuss the rise and (possible) fall of the mighty crypto exchange, Coinbase. 

The rise and rise of Coinbase exchange 

At the start of 2012’s summer, Coinbase was co-founded by current CEO Brian Armstrong, Fred Ehrsam, and Blockchain.info co-founder, Ben Reeves. At its launch in October the same year, Coinbase provided buying, selling, and trading Bitcoin (BTC) services using U.S. bank transfers. 

After several funding rounds from top VCs, Coinbase finally reached the million user mark in 2014. The company currently boasts of over 30 million users globally. However, it is during the 2017 bullish run that the exchange saw its most significant year yet, recording a total revenue of $1 billion as the market blossomed and Bitcoin reached its all-time high price of near $20.000 USD.

The exchange gained its prestige through 2018 crypto winter – altcoins that were listed on the exchange immediately pumped, hence the common term, “Coinbase pump”, used widely at that time in the markets. 

The exchange expanded its operations to Europe later that year through its Coinbase International Inc. subsidiary targeting a global audience.

However, the once dubbed, “Apple of Exchanges” is morphing into just “another exchange” as Vijay Boyapati, once said. Several issues are compiling on the exchange, and this may be the start of a death spiral for Coinbase. 

‘Coinbase hanging by a thread’

Multiple system crashes in 2020

In almost (if not all) of the Bitcoin large pumps and dumps in 2020, the Coinbase platform has faced a crash leading to a loss in profits for users and traders on the platform. On January 30, Coinbase Pro, the institutional-grade exchange went down for maintenance for several minutes leading to several users leaving the platform. 

In the next five months, Coingape covered two major crashes on the platform – on April 30 and May 10 – as the price of BTC fluctuated wildly. These, however, represent only part from the several malfunctions the exchange has faced so far in 2020. 

Selling data to the government?

Reports from the crypto news website, The Block, recently showed the analytics wing of the exchange may be selling data to the Internal Revenue Service (IRS) and Drug Enforcement Agency (DEA). While the exchange maintains the data is all sourced from the publicly available data on the blockchain, the news shook the market’s trust in the exchange.  

A tainted legal history?

Coinbase is also losing its prestige due to the increasing number of lawsuits against the exchange. One of the famous lawsuits against the exchange is the listing of Bitcoin Cash, a BTC spinoff in 2017. In 2019, a U.S judge in the Northern District of California received a filing claiming “that Coinbase breached its duty to maintain a functional market” while listing BCH – with insider trading rumours flying around. 

Competent competitors are finally here

For a sometime Coinbase has enjoyed a kind of monopoly over the cryptocurrency trading in the western hemisphere of the world – especially the United States. The exchange is finally getting real competition in top exchange such as Binance, which expanded to the U.S under Binance.US, and Gemini, the Winklevoss-owned compliant exchange that has opened an account with JP Morgan alongside Coinbase.

The recent misgivings on Coinbase exchange’s trading platform compound its high trading and transaction fees signaling a possible start to an end. With the rise of other exchanges possibly challenging Coinbase, can the team fight off its developmental and publicity problems and keep its place at the helm?

Source: https://www.crypto-news.net/is-coinbase-exchange-headed-towards-an-inevitable-collapse/

Blockchain

EOS, BAT, Dogecoin Price Analysis: 16 January

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EOS‘s market noted some bearish presence, with the same likely to push the crypto’s price slightly south towards $2.6. Basic Attention Token appeared to break out of a range backed by significant trading volume, while Dogecoin was in a phase of consolidation and traded sideways on the charts with no strong momentum.

EOS

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: EOS/USDT on TradingView

The RSI floated just under the neutral 50 value, unable to rise above and likely indicative of a downtrend to come. The price, more importantly, flipped the $2.73-level to support recently and attempted a surge towards the next level of resistance at $3.

This session (cyan) saw the market’s bulls drive prices as high as $2.93, but the bears stepped in and pushed the price down to test the support at $2.6. This highlighted a lack of bullish strength.

Their presence in the market is poised to be highlighted once more. It can be expected that EOS would slowly descend towards $2.6 once more. If it does not hold as support, the price could drop to $2.44 in the coming days.

In other news, Arca CIO Jeff Dorman tweeted that EOS could be undervalued due to its massive BTC holdings.

Basic Attention Token [BAT]

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: BAT/USD on TradingView

The range between $0.27 and $0.2 is one that BAT has traded within since late November. On the 6-hour charts, it appeared that BAT was headed for a breakout above this range. The trading volume for the most recent session before press time was extraordinary, pointing towards market conviction.

The MACD formed a bullish crossover and rose above zero to highlight bullish momentum. However, the $0.292-mark continued to be a thorn in the side of bulls and can be expected to stall the rise of BAT’s price.

Another rejection at $0.292 could see BAT tumble sharply back within the range it was trading within.

Dogecoin [DOGE]

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: DOGE/USDT on TradingView

After its explosive move from $0.0045 to $0.01, DOGE spent the past few weeks in a phase of consolidation. Using the swing high and low of this phase for DOGE, and Gann’s rule of eight, some potential levels of support and resistance (yellow) can be plotted on the charts.

It can be seen that DOGE has respected these levels. The Awesome Oscillator showed a lack of definitive momentum in either direction for DOGE.

Source: https://ambcrypto.com/eos-bat-dogecoin-price-analysis-16-january

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Blockchain

Demand for Ethereum hits rooftop, price could quadruple within 90 days

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Upcoming ETH Futures And Increased Interest From Institutional Investors Will See Ethereum Hit $10K - Pundit Predicts

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Bitcoin bulls are calling $50,000 for the next rally. Ethereum bulls are also just as optimistic, as fundamental indicators are looking as promising as technical indicators. These key signals imply that a bullish rally, despite price stagnation is imminent and includes the sky-high demand for Ethereum’s ETH, which analysts claim will unseat supply in the coming weeks. To get the point across, analysts noted how Bitcoin’s price quadrupled within a three months period (November 2020 to January 2021) when demand toppled supply.

In the last 48 hours, Ethereum has sustained losses of 8.5%. The drop in prices was triggered by whale activities, reflected in the exit of ETH worth $2.4 billion from the Bitfinex exchange.

DeFi still remains one of Ethereum’s most promising ventures. At press time, locked in value has hit $23.22 billion. But Ethereum’s DeFi industry is still in its early stages, hence market maturation is still at its beginning state. “The DeFi market is still severely undervalued,” says analyst Joseph Young. Making up a large fraction of the entire digital currency market, he touches on DeFi’s astounding market cap.

“The total market cap of all DeFi tokens (even including Chainlink) is $25.7 billion. XRP and LTC and ADA will result in $31 billion.” 

Decentralized futures, still in the early stages but just as bullish is already processing millions of dollars in daily transactions. Young noted this in a preceding tweet as quoted below ;

“Decentralized futures exchanges on Ethereum are also seeing fast growth. Perpetual Protocol, for instance, is processing $50 million PER DAY.”

Meanwhile, on the technical charts, Ethereum seems to be replenishing its 7 days losses with reverse daily gains of 12% at the time of this report. However, the second most valued digital asset may need more to break above the $1,350 resistance level. Within the last few days, it has become evident that the strong price rejection around said resistance is still ongoing. 

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Demand for Ethereum hits rooftop, price could quadruple within 90 days
ETHUSD Chart By TradingView

Ethereum bulls have been knocked back down on several occasions. And the bearish momentum had successfully managed to suppress ETH to a low of $994. At press time price of $1,209, ETH bulls will need to build enough momentum to retest $1,350 resistance or risk testing $880 support levels.

A bullish price reversal is still being anticipated by analysts who opine that LINK, DOT, and ETH will pioneer the altcoin season.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/demand-for-ethereum-hits-rooftop-price-could-quadruple-within-90-days/

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Blockchain

Polkadot surpasses XRP to grab the 4th slot

TL; DR Breakdown Polkadot (DOT) is now the 4th largest crypto by market cap XRP could suffer a catastrophic blow if ruled a security The crypto market is shifting again, and this time, the charts are re-arranging as Polkadot moves up by one position. The top 10 largest cryptos (by market cap) have always been […]

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TL; DR Breakdown

  • Polkadot (DOT) is now the 4th largest crypto by market cap
  • XRP could suffer a catastrophic blow if ruled a security

The crypto market is shifting again, and this time, the charts are re-arranging as Polkadot moves up by one position. The top 10 largest cryptos (by market cap) have always been a good point of reference when it comes to market movements. Now, it seems like XRP is getting stripped of its position, a spot now occupied by Polkadot (DOT).

The last few days have been a huge challenge for XRP as it battles the negative effects resulting from the current lawsuit facing its creator company, Ripple. A quick glance at the running market placements reveals that XRP price has been losing ground while other cryptos like Polkadot have been scoring gains each day.

Polkadot (DOT) has been thriving

In the past 7 days, Polkadot has surged by over 64%, putting the price at around $15 – according to information on CoinMarketCap. Over the same period, XRP has dropped by 10% to put the price at around $0.28. As a result, Polkadot has been gaining traction both in popularity and relative acceptance as an interoperability protocol designed to facilitate multi-chain operations. The network uses DOT as its native crypto token which users can use to vote on issues concerning the network’s governance.  

Polkadot surpasses XRP to grab the 4th slot 1
Polkadot

Currently, DOT has posted an impressive Market Cap totaling $13.4 billion as opposed to XRP’s $12.7 billion, effectively making it the 4th largest crypto by market cap. That’s after Tether (3rd place at $24.29 billion), Ethereum (second place at $135.3 billion), and Bitcoin (first place at $681.6 billion).

XRP facing an existential threat

For some years, Ripple has been lobbying to get XRP ratified as a cryptocurrency as opposed to the views of some who see it as a security. These efforts seem to have somehow back-fired as the US SEC moved to file a suit against Ripple and its top management back in December 2020. According to SEC, Ripple has been illegally transacting with XRP, which SEC sees as a security. The accused include Ripple’s CEO Brad Garlinghouse, co-founder and Executive Chairman Chris Larsen, and Ripple Labs itself.

The suit has led to investors like Grayscale ditching XRP. Some crypto exchanges suspending XRP from their trading platforms, while others have moved to delist it altogether. The latest to take action is Kraken.

These developments are in no way in favor of XRP, and they could cause a lasting effect on its market standings. If XRP is ruled a security, it will cease to exist as a crypto and ultimately end its streak as one of the most popular digital tokens backed by the might of a global company.

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